The figure matches the upper limit of the central bank’s target range of 1.5%-3.5% for 2013.
In December 2014, the annual inflation is predicted at 3.2%.
Speaking at the presentation of the bank’s quarterly inflation report, Isarescu said the annual rate is expected to remain outside the target range until the second half of 2013, mainly due to an unfavorable base effect and higher administrated prices.
Additionally, the government’s support scheme for renewable energy production, which translates into costlier electricity bills for consumers, will have a negative effect on the monthly inflation, Isarescu said.
Romania’s inflation is estimated to climb to 5%-6% in the first part of 2013, from 4.95% in the last month of 2012. The rate is predicted at 5.2% in the first quarter and is seen peaking at 5.9% in the following three months.
The temporary spike in inflation will be influenced by administered prices, as well as by higher food and tobacco and fuel prices, the central bank said in its quarterly report.
“The disinflation process expected for the second half of 2013, provided this will be a standard agricultural year, will benefit from the transition to a favorable base effect, which in turn will have a positive effect on volatile and CORE2 processed food prices,” the report showed.
The annual adjusted CORE2 inflation, which excludes tobacco, alcohol and administered and volatile prices, is expected to ease to 2% at the end of 2013, from 3.3% in December last year.